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How to start a cannabis business in Nevada(Las Vegas)- Business Guidelines

The Cannabis business is a highly profitable business, especially in places like Las Vegas where the tourism ratio is very high and cannabis brands are growing. Many brands which started from nothing are now known all over the world. If you are thinking of a startup in Las Vegas, you may want to consider this information which will help you launch a legal startup and grow your business.

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Nevada and cannabis law:

In many countries and states, marijuana or cannabis are illegal drugs, you can’t do business legally in these countries or states. Most of the states prohibit their sale and production but some states allow it under federal law or special guidelines which you must know before starting a business. The authorities make their own cannabis laws for sale and productions and usually it varies from place to place but currently we are talking about Nevada cannabis law. Some states legalized medical dispensaries and some states legalized both recreational and medical dispensaries.

In Nevada medical marijuana was legalized in 2000 and in 2016 recreational cannabis was legalized. In Nevada one needs the proper licensing to start a cannabis business, and they have some rules and regulations which you must be aware of before stepping into the business of cannabis.

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These are the  following laws you need to know before applying for a license:

  • AGE REQUIREMENTS

Customers should be more than 21 and you must verify by checking  government issued identification.

  • CRIMINAL RECORD.

You cannot have a criminal record and the department will check it according to sections 453D.305. You must give your fingerprints along with authorization.

  • TYPES OF LICENSES. 

There are five types of licenses.

  1. Distributor

  2. Product manufacturing facility

  3. Cultivation facility

  4. Retail store 

  5. Testing facility

  • TAXATION

10% excise tax for retail sale and retail sale tax paid by the store

Retail tax determined by the local rate

  •  License and application fees

$5000 Application fee

$2000 license fee

Furthermore, there are rules and regulations about how much you can sell and if you’re allowed to sell other things besides marijuana. This will be covered in detail on the next page.

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Who supervises the licensing:

The department of taxation handles all the registration and licensing of medical and recreational marijuana. They also give information on their sites, you can check on their websites to see whether they are accepting applications or not.

WAS YOUR APPLICATION DENIED?:

The department can deny your application if it is not submitted properly according to law, however the department may give you another chance to fall on terms and conditions and start your business, and they also give you an opportunity to correct any errors before denying your application. You can also submit an appeal.

CAN MY DISPENSARY BE LOCATED ANYWHERE?:

No, terms and conditions state that dispensaries can’t be located within 1000 feet (0.3 km) of a public or private school.

Dispensaries can’t be within 300 feet (ca. 91 m) of a community facility.

Advertisement requirements :

There are also restrictions on advertisement and you must be aware of them before advertising your business. For example, the law prohibits a marijuana store from contracting with third parties to advertise delivery to consumers. Dispensary owners can’t promote over production or consumption of cannabis.

Packaging requirements:

A cannabis owner must have a package on which warnings should be written such as:

  • This is a marijuana or cannabis product

  • The product may be unlawful outside Nevada

There should be clear written warnings to consumers which are:

  • Marijuana should be kept out of the reach of children

  • The health risks associated with the consumption of product

IS THE LAW THE SAME THROUGHOUT THE STATE?:

Cities have additional laws and requirements;  for example, Las Vegas has different processes of licensing and some cities like Fallon completely prohibit the sale of marijuana, therefore it is important that you are aware of local laws.

ATTORNEY HELP:

Applications, licensing and many things related to this business are complex therefore you should hire an attorney that is familiar with all legal aspects and can give you full focus on your business. If you face any problems, according to law the attorney can help you.

You can hire an attorney through Nevada cannabis attorneys.

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